Which 2 ASX 200 bank shares just smashed new decade highs?

For once, the big news on banks is not about CBA shares!

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S&P/ASX 200 Index (ASX: XJO) bank shares are all in the green on Friday amid another record high for the local bourse.

Meanwhile, two of the big four ASX 200 bank shares have ripped to new 10-year highs following pleasing reports.

Which ASX 200 bank shares ripped to decade-high prices?

Australia's second biggest bank, Westpac Banking Corp (ASX: WBC), reached a 10-year share price milestone on Friday.

The Westpac share price rose 2.55% to an intraday high of $36.96 in afternoon trading.

Shares in the fourth-biggest bank, ANZ Group Holdings Ltd (ASX: ANZ), also rose to a 10-year high of $33.06 on Friday, up 1.72%.

What did ANZ report on Friday?

ANZ released its Pillar 3 and 3Q FY25 chart pack today, along with its APS 330 Pillar 3 Disclosure today.

ANZ reported a Level 2 CET1 ratio of 11.94%, an increase of 16 basis points since the March quarter.

Customer deposits at ANZ rose by 3% or $19 billion in the June quarter.

Institutional deposits rose by $13 billion, payments and cash management deposits lifted $7 billion, and term deposits rose by $6 billion.

Net loans and advances rose by 2% or $16 billion.

What's pushing Westpac shares higher today?

Westpac released its 3Q FY25 update yesterday, revealing an unaudited statutory net profit of $1.9 billion in the June quarter.

That's up 14% on the 1H FY25 average.

The ASX 200 bank also reported a 12.3% CET1 capital ratio, which is above its target operating range of between 11% and 11.5%.

Westpac said:

This quarter we delivered a sound financial result, while executing on our strategy and priorities.

We grew strongly in business and institutional banking, while focusing on returns in Consumer and improving customer experience.

In terms of macroeconomics, Westpac said:

The resilience of both households and businesses has been aided by the reduction in interest rates and the moderation of inflation.

This is reflected in lower levels of customer stress. It should also underpin a recovery in private sector activity and support lending growth.

Westpac also released its Pillar 3 report and an investor discussion pack.

What do the brokers think of these ASX 200 bank shares?

After reviewing Westpac's numbers, Macquarie issued a new note:

WBC delivered a better-than-expected 3Q25 update, with a number of small tailwinds contributing to a ~3bps underlying margin beat.

While costs were below expectations, we see this as a timing issue, noting the ramp-up in Project UNITE and the hiring of bankers.

We continue to forecast earnings headwinds as the benefits from the replicating portfolio fade and investments ramp up.

The broker retained its underperform rating on Westpac shares but increased its 12-month share price target from $27.50 to $30.

Earlier this week on The Bull, Blake Halligan from Catapult Wealth revealed a buy rating on ANZ shares.

Halligan said:

Among the big four banks, ANZ is the most attractively priced and was recently trading on an appealing dividend yield.

The new chief executive has been restructuring the business and integrating Suncorp Bank.

If the ANZ can demonstrate that non-financial risk management is improving, it may be able to free up substantial capital for further opportunities.

Potentially falling interest rates should be positive for the entire banking industry.

Last week, we revealed the consensus forecasts for dividend payments from the ASX 200 bank shares in 2026.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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